ENHANCING PUBLIC SERVICE DELIVERY: EVALUATING THE IMPACT OF PERFORMANCE-BASED CONTRACTING ON GOVERNMENT-FUNDED PRIVATE SCHOOLS

Abstract

Enhancing public service performance is a global imperative. In education, partnering with the private sector not only addresses financial constraints but also enhances overall performance. This study examine the impact of contracting on the performance of government-contracted schools in Punjab, Pakistan, taking into account the mediating role of organizational culture and moderating influence of monitoring, This study was conducted on the Punjab Education Foundation, the largest private-sector contracting model in public sector in South Asia. Data were collected from 217 officers and analyzed using PLS-SEM. The results unveiled a significant influence of contractibility on partner schools' performance. Moreover, a result-oriented culture significantly mediated the connection between contractibility and performance. Furthermore, impact of monitoring as a moderator was also found significant. To the authors' knowledge, this study pioneers the assessment of partner schools' comprehensive performance, covering service goal attainment, excellence, efficiency, and quality/quantity of work output. The current study offers fresh insights by testing a model, relying on agency theory, in South Asia's largest educational context. The study also developed an inimitable affiliation with agency theory in a new perspective. This study provides practical guidance by emphasizing the importance of performance based contracts and result-based culture while refining contracting strategies, monitoring mechanisms for effective oversight, and benefiting both
practitioners and policymakers across various disciplines involving public service contracting.